Impacts of Casino’s in Korea

Introduction• The first casino opened in Korea in

1962, as a way to attract inbound tourist from overseas.• Today, a total of fourteen casinos are

in operation in Korea.

Introduction• The government first legalized a casino for

local people in Chongsun, Kangwon province after the residents repeatedly urged officials to legalize gaming for domestic customers in order to revitalize this dilapidated mining town.

• The geographical location of this area is a rundown mining area that suffered a devastating economic situation after coal was replaced by oil and gas.• In year 2004, the government announced

it would legalize 3 additional casinos for foreigners: two casinos in Seoul and one casino in Busan. They will be run by a subsidy of Korea National Tourism Organization.

Positive impacts

• casino opened, a number of impacts have been detected.• As example of economic benefits,

local business, lodging facilities, restaurants, taxis and gas stations increased their sales volume by 50% to 200 (Kangwon Province 2000)

•More than 1.8 million people visited the casino, and casino revenues amounted to 695 million dollars in 2004 (Kangwon Land Casino, 2005)• Casino hired 44% of its employees

and purchased 80% of its inventory from the community.

• Moreover as of December 2004., the casino hired about 3,115 employees of which 44% were recruited from the communities(Kangwon Land Casino 2005).• The rate of foreign exchange earnings for

the casino sector was found to be 94%.

Rate of foreign exchange earnings.Number sector Rate % Rank

Export

1 Textiles/apparel/leather 64.3 8

2 TV’s 60.0 9

3 Semiconductors 39.3 10

4 Passenger cars 79.5 6

Tourism

5 Shopping (retail trade) 93.9 1

6 Restaurants 90.5 5

7 Hotels 92.2 3

8 Transportation and communication 78.2 7

9 Culture and recreation services 91.7 4

10 Casinos 93.7 2

• By the end of fiscal year 2002, Kangwon Land Casino earned approximately US$220 million in revenues and paid over US$100 million in taxes to the central government and taxes and donations to the local government (Kangwon Land casino 2003)

Negative social Impacts• Some negative social impacts such as

gambling addiction, bankruptcy, and crime.• Gaming has been traditionally perceived as an

immoral activity.• Numerous traditional gambling activities have

jeopardized the quality of life of individuals and families in the past.

• Pathological gamblers could lose all their assets and also their lives.

• A typical gambling problem starts with an increasing amount of debt and may escalate to the committing of crimes by gambling addicted individuals.• In extreme cases, some commit suicide

when they discover that they cannot control themselves

• Since Korean government deregulated the overseas travel policy in 1989, Korean outbound travel to casinos in foreign countries has led to numerous unfortunate instances of financial difficulties, involving money laundering, paying extremely high interest rates on debts and suicide.

Minimizing the negative impacts

• Problems can be prevented through proactive educational programs and treatment in a clinical environment.

• Proper regulation of gambling can make the industry healthy and ensure that economic impact of recreational gaming activities remains beneficial.

• The government and businesses should support an effective compulsive gambling treatment program.• A portion of the casino operation’s profits

could be used for this purpose.• Kangwon Land Casino spends a great deal

on the Korea Gambling Problem center (KGPC).

THE OBJECTIVES OF KGPCDEVELOP AND PROVIDE PREVENTION AND TREATMENT PROGRAMS

LINK WITH A CLINICAL HELP LINE

OFFER EDUCATION PROGRAMS FOR YOUTH AND LOCAL RESIDENTS

INCREASE PUBLIC AWARENESS OF POTENTIAL PROBLEM BEHAVIOUR

• KPGC provides a telephone hotline for immediate contact for pathological gamblers, potential gamblers, family members of problem gamblers and other interested person.

• The hotline telephone number is posted in the casino, on its Web site and in brochures.• Once a person contacts the KGPC, a

trained professional helps screen the severity of the caller’s problem and refers the caller to visit the KGPC.

• The person will join the treatment program and may be contacted by a clinic.• The hotline also provides additional

information ad resources for help, such as Gamblers Anonymous (GA or “Dandobak” in Korean) or the Korean Institute of Brief Family Therapy (BFT).

• The KGPC works closely with GA and provides callers with information regarding GA group meetings, locations and times.• The BFT provides consulting services for

families who have problems associated with marriage, parenthood and addictions to gambling, drugs or alcohol.

• When an individual’s gambling problem seems to be serious, the gambler may likely be referred to the KGPC’s intensive outpatient programs.• In the outpatient program, individuals

meet with a professional counsellor.

• Individual interactions between pathological gamblers and the counsellor may require additional support from government, clinical and religious group.• Individuals may also seek help from

KGPC in solving financial, legal, marital or employment issues caused by their gambling problems.